Type:
Bearish Drop
Key Levels:
Resistance: 8811
Pivot: 8648
Support: 7989
Preferred Case:
On the H1, price is moving below the ichimoku cloud which supports our bearish bias that price will drop from our pivot at 8648 in line with the pullback resistance and 23.6% fibonacci retracement to the 1st support at 7989 in line with the overlap support and 161.8% fibonacci extension .
Alternative Scenario:
Alternatively, price may break through pivot structure and rise to the 1st resistance level at 8811 in line with the pullback resistance, 38.2% fibonacci retracement and 78.6% fibonacci projection .
Fundamentals:
The worries over a recession in the US and the ongoing Covid-19 situation in China are likely to balance the supply-side constraints faced by oil producers, resulting in a mixed bias for crude oil .
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.